Shares of Bajaj Finance surged nearly 7% to hit a record high of Rs 1,127 on Friday after the non-banking financial company (NBFC) reported better-than-expected June quarter earnings, prompting several brokerages to raise their target prices and express confidence in the lender’s growth outlook.
The stock rose as much as 6.7% during early trade to Rs 1,124.50, making it one of the top gainers on the Nifty 50. The rally has extended the stock’s recent gains, with Bajaj Finance rising 8.6% over the past five trading sessions, nearly 12% over the last month and more than 24% over the past six months, according to market data shared above.
The rally came after the company reported first-quarter results on Thursday that beat Street expectations across most key parameters.
WHAT DROVE THE BAJAJ FINANCE STOCK?
Bajaj Finance reported a 27% year-on-year rise in consolidated net profit to Rs 5,986 crore for the quarter ended June 2026, beating analysts’ estimates.
The lender’s net interest income (NII) rose 23% to Rs 12,571 crore. While this was slightly below some analyst estimates, the quarter was supported by improving asset quality and resilient profitability.
Gross non-performing assets (GNPA) improved to 0.96% from 1.03% in the previous quarter, while net NPA declined to 0.39% from 0.50%, signalling better asset quality.
Bajaj Finance beat estimates across key metrics, encouraging investors to push the stock to an all-time high.
BROKERAGES RAISE TARGET PRICES
The strong quarterly performance and upbeat management commentary prompted at least five brokerages to revise their target prices higher.
CLSA retained its “Outperform” rating and increased its target price to Rs 1,300, calling Bajaj Finance the “Iron Man” of the NBFC sector. The brokerage said profit after tax exceeded estimates due to stronger-than-expected operating performance and lower credit costs. It also highlighted the sharp improvement in asset quality as the standout feature of the quarter.
HSBC maintained its “Buy” rating and raised its target price to Rs 1,270 after describing the June-quarter performance as exceptionally strong across key operating metrics. It also upgraded its earnings estimates for FY27-FY29, citing better growth prospects and improving asset quality.
Nomura also reiterated its “Buy” rating with a target price of Rs 1,140, saying earnings exceeded expectations because of healthy operating performance and robust asset quality.
Bernstein, however, maintained its “Underperform” rating and target price of Rs 840 despite acknowledging the company’s strong quarterly performance. The brokerage said the quarter benefited from healthy assets under management (AUM) growth, stable net interest margins and easing credit costs, but believes the stock offers limited upside at current valuations.
MANAGEMENT COMMENTARY BOOSTS SENTIMENT
Apart from the earnings beat, analysts also drew confidence from the company’s management commentary.
Brokerages said management remained optimistic about business growth while maintaining profitability. Some also pointed to improving trends in personal and business loan portfolios, with expectations that guidance on key operating metrics could be revisited after the second-quarter results if current trends continue.
The upbeat outlook, coupled with improving asset quality and strong earnings growth, helped lift investor sentiment, sending Bajaj Finance shares to a fresh lifetime high.
